ABS

  • Fitch, S&P downgrade commercial ABS outlook

    Fitch, S&P downgrade commercial ABS outlook

    S&P Global Ratings and Fitch Ratings adjusted their views on the most at-risk commercial ABS asset classes, namely aircraft and whole business securitizations, as the Covid-19 crisis puts even the largest and most well-established issuers to the test.

  • Post-coronavirus comeback expected after most Q2 ABS to be retained

    Post-coronavirus comeback expected after most Q2 ABS to be retained

    The Bank of England’s Term Funding Scheme for small and medium-sized enterprises (TFSME) is encouraging retained issuance in European ABS planned for the second quarter, but publicly syndicated deals are expected to rebound once the Covid-19 crisis subides.

  • ABS cheers TALF 2.0 but bemoans limited scope

    ABS cheers TALF 2.0 but bemoans limited scope

    The Federal Reserve continued its roll-out of initiatives to support the economy through the Covid-19 crisis this week, including the revival of the term asset-backed loan facility (TALF). However, market participants say the program is incomplete as long as it omits certain asset classes, specifically private label CMBS, and worry that some sectors will buckle without the support of the central bank.

  • World Bank pandemic bond still weeks away from trigger

    World Bank pandemic bond still weeks away from trigger

    The pandemic bond issued by the World Bank still has one more hurdle to clear before triggering and releasing funds for use by countries struggling with the coronavirus. But it will still take a couple of weeks at least to reach that point.

  • Warehouse terms offer hard choice for ABS issuers

    Warehouse terms offer hard choice for ABS issuers

    Warehouse terms are looking increasingly challenging for European securitization issuers as the Covid-19 shocks continue, with some less-established issuers feeling pressure to come to market while spreads are pushed wider and warehouse extensions become less economical.

  • Mercedes-Benz uses rare revolver for auto ABS

    Mercedes-Benz uses rare revolver for auto ABS

    Mercedes-Benz Auto Finance broke an almost year-long break from the China auto ABS market this week with a Rmb6.316bn ($892m) deal. The company added a three month revolving period to its transaction, a rarity for issuers.

  • Bankers get the orders to steer clear of aircraft ABS

    Bankers get the orders to steer clear of aircraft ABS

    Many investment banks are circulating orders for bankers not fund any committed debt transactions in the aircraft sector, including ABS deals, a decision spurred by market volatility from Covid-19. On top of restrictions on in-person meetings, macro factors such as city lockdowns and travel bans are putting a damper on the new issue pipeline.

  • SRT market struggles with marks as SMEs, corps face crisis

    SRT market struggles with marks as SMEs, corps face crisis

    The synthetic risk transfer market, where specialist hedge funds write protection on up to €100bn of notional risk per year from banks, is grappling with the impact of the coronavirus on SME and corporate credit. The illiquid bilateral transactions barely trade, but have increasingly been financed through the repo market, giving banks and funds a challenge as they fight over where the positions should be marked.

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